California's Prop. 45 Puts the 'Abundance' Movement to the Test

California voters face a pivotal choice on Proposition 45, a ballot initiative designed to dramatically streamline permitting for housing, green energy, schools, healthcare facilities, broadband, water infrastructure, and wildfire mitigation projects. The measure takes direct aim at the California Environmental Quality Act (CEQA), a 1970 law that has become one of the most potent tools for blocking or delaying construction in the state — often weaponized by homeowners, building unions, and environmental groups pursuing leverage rather than genuine environmental protection.

Under CEQA's current structure, even minor projects can face years of environmental review, unlimited public comment periods, and litigation with no firm deadline for resolution. The law has been used to block everything from a competitor's gas station pumps to bike lanes, food banks, and solar farms. Prop. 45 would impose hard deadlines: a 45-day window for public comments on draft environmental impact statements, a 30-day window for opponents to file lawsuits after project approval, and a 270-day limit for courts to issue rulings. Crucially, judges who find flaws in one aspect of a review could not block the entire project — a tactic currently used to kill developments outright.

The California Building Industry Association estimates the measure would cut the average cost of building a new home by $75,000, with additional savings for public infrastructure projects potentially running into the billions. Renewable energy groups, affordable housing advocates, and California's local NAACP chapter have backed the initiative. Opposition has coalesced around building trade unions, plaintiff law firms, and environmental groups — entities whose negotiating leverage depends on the ability to threaten or file CEQA litigation. A notable detail: trade unions had reportedly planned to stay neutral until pressure from plaintiff attorneys pushed them into the 'no' camp.

The 'no' campaign's donor list has drawn sharp attention. Actress Jane Fonda and Wendy Schmidt — wife of former Google CEO Eric Schmidt — are among its prominent funders. The Schmidts purchased a 56,500-square-foot Los Angeles home for $110 million last year, a fact that sits awkwardly alongside opposition to reforms aimed at reducing housing costs for renters paying $3,000 a month for studio apartments. A Public Policy Institute of California survey found the measure leading strongly among voters earning under $100,000 and renters, while trailing among higher-income and homeowner demographics — a telling class divide. Governor Gavin Newsom, who has publicly championed an 'abundance' agenda, has declined to take a position on the initiative.